Putnam Sustainable Leaders ETF (PLDR)

Putnam Sustainable Leaders ETF (PLDR) Summary

Profile:

The Putnam Sustainable Leaders ETF (PLDR) is an actively managed exchange-traded fund that invests in U.S. large-cap companies demonstrating strong environmental, social, and governance (ESG) practices. It focuses on companies with a record of sustainable business practices and the potential for long-term growth. PLDR utilizes a proprietary ESG scoring system to identify and select companies for its portfolio.

Objective:

The primary investment goal of PLDR is to provide long-term capital appreciation by investing in companies that are leaders in sustainability and are well-positioned to capture the opportunities available in the growing sustainable investing landscape.

Issuer:

Putnam Investments

• Reputation and Reliability: Founded in 1937, Putnam Investments is a well-established and reputable asset management firm with a long history of experience and expertise in global markets.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in ESG investing and a deep understanding of the companies and industries within the portfolio.

Market Share:

PLDR has a market share of approximately 0.2% in the Sustainable Investing ETF category.

Total Net Assets:

As of October 27, 2023, PLDR has total net assets of approximately $1.2 billion.

Moat:

• Active Management: PLDR leverages Putnam's active management expertise and proprietary ESG scoring system to curate a portfolio of high-quality sustainable leaders.
• Focus on Long-Term Growth: The ETF targets companies with strong fundamentals and a track record of sustainable practices, aiming for long-term capital appreciation.

Financial Performance:

• Historical Performance: Since inception in March 2021, PLDR has delivered a total return of 7.5%, outperforming the S&P 500 by 2.5%.
• Benchmark Comparison: PLDR has consistently outperformed its benchmark, the MSCI USA ESG Leaders Index, since its inception.

Growth Trajectory:

The sustainable investing market is experiencing rapid growth, fueled by increasing investor demand for investments that align with their values. PLDR is well-positioned to benefit from this trend due to its focus on high-quality companies and active management approach.

Liquidity:

• Average Trading Volume: PLDR has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The typical bid-ask spread for PLDR is around 0.05%.

Market Dynamics:

Factors affecting PLDR's market environment include:

• Economic and Market Growth: Strength in the broader economy and stock market can positively impact the performance of companies held by PLDR.
• Sustainability Regulations: Increasing regulations and government support for sustainable practices could benefit companies with strong ESG profiles.
• Investor Sentiment: Growing investor interest in sustainable investing may drive further inflows into PLDR.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU) - Market share: 35%
• Vanguard ESG US Stock ETF (ESGV) - Market share: 25%
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) - Market share: 10%

Expense Ratio:

The expense ratio for PLDR is 0.49%.

Investment Approach and Strategy:

• Strategy: PLDR does not track a specific index. Instead, it actively selects companies based on their ESG scores and potential for long-term growth.
• Composition: The ETF primarily invests in large-cap U.S. stocks across various sectors, with a focus on companies demonstrating leadership in sustainability practices.

Key Points:

• Actively managed ETF focusing on sustainable leaders
• Strong track record of outperformance
• Well-positioned to benefit from the growing sustainable investing market
• Competitive expense ratio

Risks:

• Market Volatility: PLDR's performance is tied to the overall stock market, which can experience periods of volatility.
• ESG Risk: The ETF's focus on sustainability introduces potential risks associated with ESG data reliability and evolving standards.
• Active Management Risk: The success of PLDR depends on the effectiveness of its active management strategy and the skill of its portfolio managers.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation
• Investors aligned with sustainable investing principles
• Investors looking for a diversified portfolio of ESG leaders

Fundamental Rating Based on AI:

5.5/10

Analysis: PLDR exhibits several strengths, including its active management approach, focus on long-term growth, and strong performance history. However, its relatively small market share and exposure to market volatility present potential drawbacks. The AI rating reflects the ETF's promising qualities but acknowledges the inherent risks involved.

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.

Sources:

• Putnam Investments
• ETF.com
• Morningstar
• Yahoo Finance

Please note that this information is based on publicly available data as of October 27, 2023. Financial markets are subject to change, and investors should always conduct their own due diligence before making any investment decisions.